Analyzing Broadway Financial (NASDAQ:BYFC) & Triumph Financial (NYSE:TFIN)

Broadway Financial (NASDAQ:BYFC) and Triumph Financial (NYSE:TFIN) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Broadway Financial and Triumph Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadway Financial	1	0	0	0	1.00
Triumph Financial	0	5	2	0	2.29

Triumph Financial has a consensus target price of $84.80, indicating a potential upside of 37.89%. Given Triumph Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Triumph Financial is more favorable than Broadway Financial.

Institutional & Insider Ownership

12.1% of Broadway Financial shares are owned by institutional investors. Comparatively, 91.1% of Triumph Financial shares are owned by institutional investors. 3.0% of Broadway Financial shares are owned by insiders. Comparatively, 5.5% of Triumph Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Broadway Financial and Triumph Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadway Financial	$63.03 million	1.68	-$24.80 million	($2.71)	-4.21
Triumph Financial	$518.88 million	2.83	$25.36 million	$1.48	41.55

Triumph Financial has higher revenue and earnings than Broadway Financial. Broadway Financial is trading at a lower price-to-earnings ratio than Triumph Financial, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Broadway Financial has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Triumph Financial has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Profitability

This table compares Broadway Financial and Triumph Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadway Financial	-29.36%	3.49%	0.28%
Triumph Financial	7.17%	4.69%	0.62%

Summary

Triumph Financial beats Broadway Financial on 14 of the 14 factors compared between the two stocks.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.

About Triumph Financial

Triumph Bancorp, Inc. operates as a financial holding company for TBK Bank, SSB that provides various banking and commercial finance products and services to retail customers and small-to-mid-sized businesses in the United States. The company operates through four segments: Banking, Factoring, Payments, and Corporate. It offers depository products, including checking, savings, and money market accounts, as well as certificates of deposit; and commercial and industrial loans, loans to purchase capital equipment, and business loans for working capital and operational purposes. The company also provides asset-based, and equipment and premium finance loans; real estate loans to finance commercial properties; to factoring services the transportation and non-transportation sectors; agriculture loans; commercial construction, land, and land development loans; mortgage warehouse loans; residential real estate loans; and consumer loans. In addition, it offers debit cards; electronic banking, trust, and treasury management services; and insurance brokerage services. As of December 31, 2021, the company operated through a network of 10 branches in the Quad Cities Metropolitan Area of Iowa and Illinois; 8 branches in northern and central Illinois; 7 branches in southern Colorado; 3 branches in New Mexico; 31 branches in central and eastern Colorado; and 2 branches in far western Kansas, as well as a branch office dedicated to deposit gathering activities in Dallas, Texas. Triumph Bancorp, Inc. was founded in 1981 and is headquartered in Dallas, Texas.